Parking

Parking has a variety of meanings, but it most often refers to the practice of having Trader A purchase a security from Trader B with the agreement that Trader A will purchase the security back from Trader B at a small increase in price in a specific time frame. It is illegal, and is done by traders to remove positions from their books at quarter or year end.

The term also refers to the holding of stock on behalf of another in order to hide the party’s ownership of the stock to avoid reporting requirements for holders of 5% of an issuer’s stock.

See, Reminder, Parking Stock is Illegal

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